BC Copper 2511 Bottomed Out and Closed Higher, Powell's Speech Bullish for Copper Prices [SMM BC Copper Review]

Today, the most-traded BC copper 2511 contract opened at 74,820 yuan/mt, closing higher intraday as bears reduced positions. In the night session, BC copper initially dipped to 74,570 yuan/mt, after which the center of copper prices gradually shifted upward. Following the daytime opening, prices fluctuated upward, approaching a session high of 76,450 yuan/mt near the close, and finally settled at 76,300 yuan/mt, up 0.14%. Open interest reached 4,679 lots, down 225 lots from the previous trading day, while trading volume reached 12,869 lots. On the macro front, Fed Chairman Powell noted tightening liquidity in the money market and a rebound in downside risks for the job market, strengthening market expectations for an interest rate cut, which provided bullish support for copper prices. On the fundamentals side, supply saw stable arrivals of both imported and domestic material, with a steady pace of supply. Demand side, overall consumption showed no improvement due to strong wait-and-see sentiment in the market, failing to provide effective support for now.

SHFE copper contract 2511 settled at 85,800 yuan/mt. Based on the BC copper 2510 contract price of 76,300 yuan/mt, its post-tax price is 86,219 yuan/mt, resulting in a price spread of -419 between SHFE copper 2511 and BC copper. The spread remained inverted and widened compared to the previous day.